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Insurance Authority Announces Its Selection of “Tawuniya” As the Leader of the Insurance Pool for the “Inherent Defects Insurance” Product

24 June 2025

The Insurance Authority has announced the transfer of leadership of the insurance pool for the “Inherent Defects Insurance” product from Malath Cooperative Insurance Company to Tawuniya Insurance Company, for a term of three years starting 24 June 2025. The insurance pool includes participation from 17 insurance companies across the sector.

Inherent Defects Insurance is mandatory for both residential and commercial buildings and is a prerequisite for obtaining building permits. It aims to protect property owners and end-users against structural defects that may not be immediately visible and typically emerge after project completion.

The product serves multiple stakeholders, including property owners by safeguarding the structural integrity of their assets, contractors by reinforcing compliance with building codes and ensuring construction quality, and real estate developers by providing protection against latent defects and strengthening confidence in development projects.

Last Modified Date: 24/06/2025 - 12:00 AM Saudi Arabia Time